AllCity, Inc., is financed 39 % with debt, 5 % with preferred stock, and 56 %...
AllCity, Inc., is financed 39 % with debt, 5 % with preferred stock, and 56 % with common stock. Its cost of debt is 5.6 %, its preferred stock pays an annual dividend of $ 2.48 and is priced at $ 30. It has an equity beta of 1.1. Assume the risk-free rate is 2.5 %, the market risk premium is 6.6 % and AllCity's tax rate is 35 %. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.
Homework Answers
WACC = (Weight of debt(Wd) * After tax cost of debt(Kd) ) + (Weight of preferred stock(Wps) * Cost of preferred stock(Kps) ) + (Weight of equity (We) * Cost of equity(Ke) )
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AllCity, Inc., is financed 39 % with debt, 5 % with preferred
stock, and 56 %...
AllCity, Inc., is financed 37 % with debt, 9 % with preferred stock, and 54 %...
AllCity, Inc., is financed 37 % with debt, 9 % with preferred stock, and 54 % with common stock. Its cost of debt is 6.3 %, its preferred stock pays an annual dividend of $ 2.49 and is priced at $ 29. It has an equity beta of 1.11. Assume the risk-free rate is 2.2 %, the market risk premium is 7.2 % and AllCity's tax rate is 35 %. What is its after-tax WACC? Note: Assume that the firm...
AllCity, Inc., is financed 43% with debt, 11% with preferred stock, and 46% with common stock....
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Please solve, thanks. AllCity, Inc., is financed 37% with debt, 15% with preferred stock, and 48%...
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P 13-15 (similar to) Question Help AllCity, Inc., is financed 39% with debt, 13% with preferred stock, and 48% with common stock. Its cost of debt is 6.4%, its preferred stock pays an annual dividend of $2.54 and is priced at $34. It has an equity beta of 1.1. Assume the risk-free rate is 1.8%, the market risk premium is 6.9% and AllCity's tax rate is 35%. What is its after-tax WACC? Note: Assume that the firm will always be...
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A company is 44% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company's common stock is 0.54. What is the after-tax WACC, assuming that the company pays tax at a 35% rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) After-tax WACC
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